Gibb D

TO: Proximity Video Team
FROM: Daisy Gibb
DATE: April 13, 2010
SUBJECT: Proposal for report on Hulu

Hulu is one of the most visited sites by Gen-Y for video content. I propose to write a report on Hulu’s position in the Internet TV market place by looking at how Hulu won the first battle of net TV, what can be expected from the next battle, and with what company and platform the future lies.

Need
People are finding new ways to watch their video and television content.

-Online sites like Hulu are being used to offer video content on the Internet.
-People are streaming online content through gaming systems like Xbox straight to their TV.
- Several online video sites are gearing up to have an app on the new iPad where streaming video content can be viewed through mobile broadband.
- Starting in the fall, Google TV will be an Internet-based TV allowing access
to many web applications like Facbook and YouTube.

Some reasons why Gen-Y prefer sites like Hulu is because they are easy to use, free, and convenient. Although the public thought advertising through Internet TV would be a failure, Hulu's embedded ads shown during second run prime time shows proved to be a success. The continued advancements made in technology (i.e. mobile broadband) will cause more advertisements to be geared towards wireless mobile devices such as the iPad.

Clients of Proximity who wish to target Gen-Y consumers need this report to understand the role Hulu will play in the Internet TV market and what other options
will be available.

Topics
The proposed report, "Hulu’s Battle with Ever-Changing Technology" will cover the following topics:

- Why the broadcast TV ad model is falling apart for targeting Gen-Y.
- How Hulu won the first battle of net TV.
- How Hulu is now caught in the chaos of the second net TV revolution.
- What the stakes are in who wins this second battle.

This report will also contain attachments that will compare the viewership between Hulu and YouTube and a screen shot of Hulu’s case study to enhance the explanation of their ad model.

Sources

Sherman, Erik. Google’s Acquisition Could Turn YouTube Into a Hulu killer. (2010, April 2).
BNET. Retrieved on April 8, 2010 from www.industry.bnet.com.

Sherman reports on the challenges that Hulu faces from competition such as Google YouTube. He states that “Hulu is big”, but some content providers are not happy with their cut from the profits and they are looking for ways to make more money. Google YouTube is acquiring Episodic, which is an “online platform for delivering video and making money from it”. Sherman proposes that with the increase in views on YouTube and with the new Episodic that advertisers will flock to YouTube instead of Hulu.


Sandoval, Greg. Hulu’s profitable, but direction still uncertain. (2010, April 1).
Cnet news. Retrieved on April 8, 2010 from www.news.cnet.com.

Sandoval compares Hulu’s and YouTube’s success in the past several years, giving the positive and negative issues with both. For example, Hulu offers full-length TV shows in higher quality, but YouTube has more viewers. Sandoval ends the article by stating that both online services have “many miles to go before a real winner can be declared”.



TVB Television Broadcast
. Google moves to challenge Hulu, which queues up for iPad. (2010, April 5). Retrieved on April 8, 2010 from www.televisionbroadcast.com.

TVB Television Broadcast reviews Hulu and YouTube’s competition while noting that both companies are gearing up for the newly released iPad. Even if Hulu has an app on the new iPad, it is going to get some significant competition from YouTube, especially since they recently acquired Episodic.


Kirkpatrick, David. A new way to watch TV. (2008, March 8).
Fortune. Retrieved on February 24, 2010 from www.money.cnn.com.

Kirkpatrick previews Hulu as a “new way to watch TV” while mentioning the positive aspects of the site and what it has to offer. He reports back on some milestones in the past for Hulu by writing about the people involved, like CEO Jason Kilar, and a bit of basic history of the site. Kirkpatrick states that even though Hulu is so wonderful, “viewers have the choice of all sorts of venues” and “Hulu will have to fight hard to stay relevant” in the constant changing of technology.


Graham, Jefferson. Hulu cues up for next step; free site hits milestone: 1 billion videos viewed. (2009).
LexisNexis Academic. Retrieved on February 24, 2010 from LexisNexis Academic.

Graham analyzes Hulu’s position in the online streaming video industry. He mentions Hulu’s increase in views as well as the entertainment Hulu has to offer. But he acknowledges the fact that while other Internet video sites are offering video content through web-connected devices to TV sets, on iPhones, and Blu-Ray players, Hulu is not taking a part in that, which could jeopardize their success in the future. Graham also addresses the rumor of Hulu starting a pay model for premium content in the future.